Democratic Socialist Candidate in Providence Touts Rent Control as City Flunks Housing Test

The Democratic nominee for mayor of Providence, RI, is vowing to enact a controversial rent stabilization scheme to help working families, as the capital of America's smallest state ranks second worst in the nation for affordability and homebuilding.

State Rep. David Morales, a 27-year-old Democratic Socialist endorsed by Sen. Bernie Sanders (I-VT), made local history this month by becoming the first challenger to defeat the incumbent mayor of Providence in a primary.

Housing affordability has emerged as the cornerstone of Morales' campaign, with the progressive candidate saying that if he wins in November, he will work toward putting into effect the rent stabilization ordinance vetoed earlier this year by current Mayor Brett Smiley.

The controversial measure, which passed the City Council in a 9-6 vote in April, would cap annual rent increases in Providence at 4% for apartments in multiunit complexes, excluding new construction, small owner-occupied buildings, and existing affordable housing units.

Smiley, a moderate Democrat serving his first mayoral term, immediately rejected the bill, arguing that rent control limits housing supply, disincentivizes new construction, and shifts tax burdens onto single-family homeowners. Most economists are skeptical of rent control as an effective solution to address housing costs.

Morales, however, remains committed to signing the rent control measure into law within the first 100 days of his administration, aiming to begin enforcement in fall 2027 or in early 2028, as the station WPRI recently reported.

State Rep. David Morales won the Democratic primary in the mayoral race in Providence, RI. (David Morales Campaign) David Talan, chairman of the Republican Party of Providence, will face Morales in November. (David Talan Campaign)

"Rising rents are pushing working families out of Providence," said Morales. "As mayor, I will work to stabilize rents so that no one has to worry about increases beyond what they can afford. I intend to use the full power of City Hall to keep the people of Providence housed."

David Talan, chairman of the Providence Republican Party who will face Morales in the November general election, has come out against rent stabilization, arguing that price caps alone fail to address the root problem of undersupply.

"For it to work, you have to increase the amount of housing that's coming in, because that’s the real problem in Providence, is the supply is not enough to meet the demand," Talan told WPRI.

Realtor.com® reached out to both mayoral candidates for comment and is awaiting a reply.

Providence earns an F

Providence's housing crisis was highlighted this month when the metro received an F grade in the 2026 Realtor.com Metro Report Cards, having earned the second-lowest overall score measuring both affordability and homebuilding metrics among the 100 largest U.S. cities, trailing only Los Angeles.

(Realtor.com)

These findings align with the Realtor.com State Report Cards released in June, where Rhode Island also received an F grade due to low building activity.

Providence is one of 13 metros that received a failing grade. All cities were ranked on a 100-point scale based on two criteria carrying equal weight: housing affordability and homebuilding. 

Affordability measures how accessible homeownership is for typical earners, while homebuilding activity is based on how many homes are being built relative to the number of people in the metro and the new-construction premium—the extra market cost of buying a brand-new home versus an existing one.

In Providence, the median earner must spend nearly 46% of their $85,000 annual income—well over the recommended affordability threshold of 30%—to afford the monthly mortgage payment on the median-priced $572,000 home, assuming a 10% down payment and a 6.5% rate on a 30-year fixed mortgage.

Realtor.com senior economist Joel Berner says that Providence's housing crisis largely comes down to not enough homes being built and marketed at affordable price ranges.

"The market is inventory-constrained without an adequate rate of new homes being delivered, and local policies are contributing to the issue," says Berner. "Much of Providence is zoned for single-family-only and is subject to minimum lot sizes and minimum parking requirements, which severely limits the types and amounts of housing units that can be built."

Recent progress and ongoing challenges

Providence has adopted reforms to boost residential construction and increase density to address deficits. (Getty Images)

However, the economist notes that in recent years, Providence has been moving in the right direction by adopting a series of zoning and planning reforms to address the "missing middle" of housing, allowing for urban infill in the form of multifamily dwellings in neighborhoods previously restricted to single-family use and accessory dwelling units.

Other policies aimed at boosting higher-density development include promoting multifamily construction along major transit corridors, streamlining permitting processes, and offering developers financial incentives to build more affordable housing units. 

These reforms have produced initial results: The city’s latest Housing Progress Report released in August shows that Providence completed 988 housing units and permitted an additional 726 in fiscal year 2026, with 40% designated as affordable.

"By removing barriers to development, investing directly in affordable housing and putting underused public properties back to work, we are creating more housing choices for Providence neighbors," the mayor, Smiley, said in a press release. 

Providence is not alone when it comes to anxiety over housing affordability. A new U.S. Conference of Mayors poll found that more than 96% of 113 surveyed U.S. mayors report that residents are very or extremely concerned about affordability, overwhelmingly citing overall housing costs as the primary driver.

Despite the recent improvements, local deficits remain substantial. Estimates from the American Enterprise Institute Housing Center indicate that Providence remains short roughly 4,100 homes—just over 5% of the city's entire housing stock.

"That shortage is an invisible hand squeezing families out of home ownership, pushing rents higher, and forcing workers to commute farther from jobs and schools," the authors wrote in their Playbook for Housing and Economic Growth released in March.

The issue of rent stabilization has emerged as a point of contention in the Providence mayoral election, with Republicans, moderate Democrats, and business groups opposing the policy. Many economists are critical of rent control, citing decades of research that show it can backfire and raise overall housing costs.

"Rent control is likely to benefit current tenants who currently live and would likely stay in units subject to rent control at the expense of renters in noncontrolled units, who will likely see rents rise faster as a result," says Berner.

The economist points out that while it is encouraging to see that new construction is exempted from the Providence rent stabilization proposal, the ultimate solution for affordability is expansion of the housing supply.

"When rents are capped, landlords are less likely to improve the units they manage and the supply of rental homes remains stagnant at best," he says. "For true rent relief, construction of new units is the only long-term solution."